Naked Trust

(redirected from Passive Trusts)

Naked Trust

A trust in which the grantor leaves assets to the care of a trustee, whose only duty is to transfer those assets to a stated beneficiary. This contrasts with most other trusts, in which the trustee invests or otherwise safeguards the assets and gives the income they generate to the beneficiary.
References in periodicals archive ?
In analyzing all securitization trusts, bankruptcy concerns generally focus on the sale of financial assets (loans) which are deposited into passive trusts, which in turn issue notes or certificates.